Chase Coleman III’s top stock pick, Microsoft Corporation (MSFT), accounts for a 10.49% share ($3.40 billion) in his portfolio. Citi sees a fundamental opportunity in the recent software selloff due to concerns about AI disruption despite positive earnings revisions on February 10, 2026.

Citi notes that software stocks have fallen at least 10% in the past month, with terminal multiples below forward P/E ratios. Microsoft Corporation (MSFT) is positioned well for all AI scenarios despite recent pressure from multiple compressions. On February 9, 2026, Melius Research downgraded MSFT to ‘Hold’ with a $430 price target.

Microsoft Corporation (MSFT) develops software, cloud services, devices, and enterprise solutions globally. While MSFT is a promising investment, there are AI stocks with greater upside potential and lower downside risk. For a free report on an undervalued AI stock benefitting from Trump-era tariffs, see Insider Monkey’s recommendation.

For more insights on the best stocks to buy right now and potentially explosive stocks under $1, check out Insider Monkey’s articles. No disclosures were made regarding investment positions.

Read more at Yahoo Finance: Is Microsoft Corporation (MSFT) Chase Coleman III’s Top Pick?